1 Magnificent High Yield Stock Down 33% to Buy and Hold Forever

From Yahoo Finance: 2025-04-12 03:05:00

Wall Street is rattled by a looming global trade war, causing investors to seek safe havens like Coca-Cola. Meanwhile, others eye high-yield stocks such as AGNC Investment. Despite its massive 16% dividend yield, the stock’s erratic dividend history and declining trend make it a risky choice.

AGNC Investment’s tempting yield may lure dividend investors seeking reliable income, but its inconsistent dividend track record, marked by cuts and a downtrend, raises red flags. While the allure of a high yield is strong, the risks associated with this stock outweigh the potential rewards during market turmoil.

Coca-Cola, a Dividend King, is a solid company with a history of dividend growth. However, its shares have been bid up by nervous investors amid market turbulence, making it expensive. Overpaying for this stock could turn what seems like a great investment into a bad one in the long run.

W.P. Carey offers a middle ground for investors with its high-yield net lease REIT status. Despite a dividend reset and office sector exit, the company’s steady dividend growth and diversified portfolio make it a strong long-term investment choice. The REIT’s transition should position it well for future growth and stability.

Investors in search of a balanced investment option can consider W.P. Carey, a high-yield stock with a solid track record and a well-diversified portfolio. While the market remains turbulent, this REIT’s turnaround story may offer a compelling opportunity to earn an above-market yield and benefit from potential price recovery.

Before investing in AGNC Investment Corp., consider insights from the Motley Fool Stock Advisor team, who excluded it from their list of top 10 stocks for future growth. Learn from past success stories like Netflix and Nvidia, and don’t miss out on the latest market opportunities by joining Stock Advisor for expert recommendations and insights.

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